Compilations of case law : HEAD OF INCOME

INCOME – CHARGEABILITY AND COMPUTATION

HEAD OF INCOME

Under which head, the transaction to be assessed ?

RECEIPT OF INTEREST

Interest earned before commencement of business on short term deposit with banks out of term loan secured from financial institutions - Other Sources

Tuticorin Alkali Chemicals and Fertilizers Limited Vs CIT (SC) 227 ITR 172

CIT Vs Petrofils Co-operative Ltd. (Guj) 241 ITR 139

CIT Vs Cochin Ship Yard Ltd. (Ker) 158 CTR 208

CIT Vs Rassi Cement Ltd (AP) 232 ITR 554

South India Shipping Corporation Vs CIT ( Mad ) 240 ITR 24

CIT Vs Kisan Sahakari Chini Mills ( All ) 280 ITR 617

Chandpur Sugar Co. Ltd. Vs CIT ( All ) 280 ITR 612

Bokaro Steel Ltd. Vs CIT (Patna) 170 ITR 545

CIT Vs Coromandel Cements Ltd, (SC) 234 ITR 412

CIT Vs Autokast Ltd. (SC) 248 ITR 110

Consolidated Fibres & Chemicals Ltd. Vs CIT (Cal) 273 ITR 353

Interest earned on short term deposits of share capital – Other sources income – cannot be set off against interest paid on capital borrowed for setting up industry.

Eskayef Ltd. Vs DCIT (ITAT, Bang) 71 ITD 419

Godavari Fertilizers and Chemicals Ltd,. Vs CIT (AP) 198 ITR 388

CIT Vs Hindustan Electro Graphites Ltd. (MP) 177 ITR 465

CIT Vs Tamil Nadu Industrial Development Corpn. Ltd. (Mad0 189 ITR 670

CIT Vs New Central Jute Mills Co. Ltd. (Cal) 118 ITR 1005

CIT Vs V.P. Gopinathan (SC) 248 ITR 449

CIT Vs Manipur Spinning Mills Corpn. Ltd. (Gau) 226 ITR 551

Money lying idle deposited in Bank – Interest – Other Sources.

Collis Line P. Ltd. Vs CIT (Ker) 135 ITR 390

Traco Cable Co. Ltd. Vs CIT (Ker) 72 ITR 503

Madhya Pradesh State Industries Copn. Ltd. Vs CIT (MP) 69 ITR 824

CIT Vs Cochin Refineries Ltd (Ker) 154 ITR 345

CIT Vs L and T McNeil Ltd. (Bom) 202 ITR 662

IAC Vs S.Khushwant Singh (ITAT, Del) 18 ITD 540

CIT Vs Monarch Tools (Mad) 260 ITR 258

CIT Vs Assam Plantation Crops Dev. Corpn. Ltd. (Gau) 221 ITR 392

Interest on debentures issued by co-operative land mortgage bank – Assessable as income from Other Sources.

CIT Vs Lakshmi Vilas Bank Ltd.(Mad) 234 ITR 796

Unpaid sale consideration – can be treated as loan – interest accruing thereon – Income from other sources.

Mount Stuart Tea Estate & Amar Coffee Plantation Vs CIT (Mad) 239 ITR 489

Taking FDRs and pledging them as securities for taking loans are two separate transactions – FDRs pledged as securities in bank for taking loans for business – Interest on such FDRs is Income from Other Sources

DCIT Vs Allied Construction (ITAT, Del-SB) 105 ITD 1